New Year's Tax-cellence

Tax Team has been contemplating the New Year.  We want to start 2014 with optimism and hope.  Our New Year’s Resolution is to find something unique to be grateful about every single day.  Since our work is to make the tax process easier for all of you, we would like to make a New Year’s Resolution suggestion: organize and keep track of your tax documentation for the New Year throughout 2014. 

Whether you decide to use software or the old fashioned expanding folder or both, keep you receipts from charitable donations, medical payments, education expenses, stock sales and whatever else you might have in a safe and easily accessible place.  Start it now, fresh and new for 2014.  If you are self-employed and have unreimbursed business expenses, keeping track of this information is vital.  Spend a few minutes setting up a new mileage/expense log for 2014.  Remember to write down your odometer reading- you will need that number for your tax return.  Tax Team knows many of you have more than one job.  If you go straight from one job to another without returning home, you can claim the mileage between the two jobs.  You can also claim medical mileage and the mileage you spend going to and from volunteer work.  If you are in the National Guard or Reserves and train more than 100 miles from home, you can claim that mileage. Just remember to write it down in your log.  If you are audited, the IRS will want to see your documentation in writing.  It is so much easier to record it has you go rather than attempting to recreate it after the fact. 

Next week:  Gathering information for your 2013 taxes. 

Happy New Year from Tax Team! 

If you have a comment or question, please contact us at john.lawless.tax @ gmail.com.